When the Terrace Inn opened in 1911, its owners billed it as Bay View's "newest and most modern hotel." One of only two remaining hotels among the resort's four hundred Victorian houses and public buildings, it was built to accommodate the growing numbers of summer visitors to Bay View, including those on adult education Chautauqua tours. William J. DeVol of Lebanon, Indiana, and his wife, Josephine, built the inn and served as the original proprietors. The new inn featured such modern amenities as hot water heat, hot and cold baths, and electric lights and call bells. The dining room offered a full menu with "hot things very hot, and cold things very cold." Although the interior saw some alterations to meet the changing needs of guests, the Terrace Inn retains its historic character.